The International Monetary Fund said on Monday that Iran's future looks brighter and if Iran can raise oil output by 1 million bpd, lower financial transaction and trade costs thanks to sanctions relief, economic growth reach a 4% to 5.5% in 2016-17.
Wall Street Journal quotes Martin Cerisola, the assistant director of the IMF’s Middle East and Central Asia Department, as saying in a statement following a September visit to assess Iran's economy, that Iran’s economy stands to profit from the nuclear deal it struck with six world powers this summer but only if the government makes major revisions to economic and fiscal policies.
He said the agreement on Iran’s nuclear program and the envisaged lifting of economic sanctions bring a unique opportunity to build on and broaden the achievements of the past two years.
He noted that officials needed to make structural changes if they want to reap the full benefits of the nuclear deal. The political will to make these changes, which include withdrawing subsidies, reducing public-sector debt and pursuing a prudent monetary policy, was essential, he added.
“The complexity and extent of the problems require strong political leadership and support for decisive and coordinated action,” Cerisola said.
Wall Street Journal wrote under President Hassan Rouhani, who took office in 2013, inflation has fallen to an annual rate of around 12%, and the Iranian rial has stabilized against major global currencies.